The steps to guide Geox through the future are clear to the company and its president, Mario Moretti Polegato. First: a new CEO. Second: a higher average selling price, thanks to Penelope Cruz. Third: keeping costs down. Fourth: investing in artificial intelligence. Let’s deep-dive them.
A crucial phase
A crucial phase is underway for Geox. The company closed 2023 with a revenue of 720 million euro (-2.2% on 2022), but EBIT increased compared to the same basis (89 million against 79.4) thanks to cost containment initiatives. This includes the rationalization of directly-operated stores.
A new CEO
Another step consisted in nominating a new CEO. After 4 years Livio Libralesso left his post to Enrico Mistron, 54 years old (with 25 years in Luxottica).His nomination was accompanied by that of Andrea Maldi as new CFO. The new CEO has clear objectives: to focus investments on end consumers, sustainability, artificial intelligence and R&D (source WWD).
New positioning
Meanwhile, Moretti Polegato explained the Penelope Cruz effect, as she is the brand’s new representative. Polegato told Corriere della Sera that thanks to the Spanish actress, “sell out has increased by 15%”. Penelope Cruz increased the interest of younger consumers and allowed the brand to sell shoes with a much higher average price. An example is given by the 200-euro boots (“a bit of a gamble for us”, commented Polegato), but also “decolletè and ankle boots”. Overall, the women’s shoes segment grew 30% in 2023. Geox’s strategy is to reposition the brand into the premium segment.
Geox invests in artificial intelligence
Geox is investing in artificial intelligence, and it does so with a training program for its 600 technicians. Moreover, it’s experimenting with AI on its creative activities as well. “Artificial intelligence is helping us speed up processes: production and communication. For example, it will allow us to understand what products work and which ones don’t, and thus help us with our procurement forecasts”, said Polegato to Il Sole 24 Ore.
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